Olam Sees Coffee Prices Firming, but Neutral on Robusta -- Market Talk

DowJones

Agricultural commodities trading firm Olam sees a "firming" in the coffee

market on demand-supply fundamentals, chief executive Sunny Verghese says at a briefing on the

company's second-quarter results Friday. The firm is "friendly" on arabica due to adverse dry

weather in Brazil, but neutral on robusta due to a bumper crop in Vietnam. Verghese says poor

weather in Brazil is likely to cut supply to 50-51 million bags from 57-60 million bags this year.

Arabica coffee for delivery in March on ICE Futures U.S. ended 1% lower at $1.3970 a pound Thursday

May-delivery lost 0.8% to settle at $1.4195 a pound. Liffe robusta coffee for March delivery ended

0.1% higher at $1,824 a ton Thursday. Arabica coffee ended last year 23% lower but has rebounded

sharply this year.